By The Paddocks Club Team

Below is an example of a question on the discussion forum on Paddocks Club. We want to show what is available to our Community Members!

Owner directives to trustees. How long are they valid?

Member’s question:
If restrictions are imposed or directions given to trustees at an annual general meeting (AGM), is that valid “ad infinitum” or just for the ensuing year?

Anton‘s reply:
Directives to trustees are a compulsory item for the AGM agenda. This means that they have to be looked at and considered every year. They could be left in place, changed or removed; it would depend on the content.

It would be possible to write a directive or restriction intended to apply indefinitely but that doesn’t mean that it couldn’t be changed or removed at the next AGM.

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Owner hasn’t submitted quotes, but wants BC to pay

Member’s question:
The roof was leaking at one of the unit’s at the body corporate I manage. We sorted the problem of the leaking roof ASAP and there was water damage inside the flat. I did ask the owner to get me quotes for the damage so we can put in a claim at the body corporate’s insurance. To date I have not received quotes. Last week I received a email from the owner saying that they feel it is now good time for the body corporate to repair the apartment and that they feel the damage is maybe to little to put in claim and that the body corporate is responsible for cost of the damage. Is the body corporate responsible for the cost?

Graham‘s reply:
The body corporate is not obliged to pay the owner’s claim without having recourse to its insurance. And the owner had an obligation to assist the body corporate is making whatever claims it could against the insurer.

I suggest that you repeat your offer that the body corporate will claim against its insurer on the basis of quotes the owner obtains for interior repairs.

At the same time I suggest you look at the insurance policy, specifically to see what excess amount is payable in respect of this type of claim. If you are sure that there was damage inside the section as a result of the body corporate’s failure to maintain the common property and the amount the owner is wanting from the body corporate is less than the excess amount, it may make sense to pay it in full and final settlement of the owner’s claims against the body corporate is this regard.

Article reference: Paddocks Press: Volume 9, Issue 3, Page 4


Professor Graham Paddock, Anton Kelly and Carryn Durham are available to answer questions on the discussion forum for Community Members of Paddocks Club. Get all your questions answered by joining Paddocks Club at

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